Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

April 25, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

Loan Repayment
Ichigo Office today completed partial repayment (JPY 250 million) of SMBC Syndicate
Loan III (Term Loan 1-A) using proceeds from the sale of Ichigo Daimyo Balcony,
announced in the March 16, 2018 release “Sale of Two Retail Assets (Ichigo Sapporo
Minami 2 Nishi 3 Building, Ichigo Daimyo Balcony).”
1. Reason for Repayment
Reduce overall interest expense by repaying a loan with a relatively high interest rate.
2. Repayment Details
SMBC Syndicate Loan III (Term Loan 1-A)
Lenders
Outstanding Balance before Repayment
Repayment Amount
Outstanding Balance after Repayment
Date of Repayment
Interest Rate
Collateralized
Original Date of Loan
Loan Maturity Date

SMBC, Shinsei Bank, Mizuho Bank,MUFG Bank
JPY 2,733 million
JPY 250 million
JPY 2,483 million
April 25, 2018
1M JPY TIBOR + 0.81% (p.a.)No
April 30, 2015
November 30, 2019

To hedge against any future rise in interest rates, the interest rate on this loan is fixed at
1.148% via an interest rate swap. The notional value of the swap has been reduced tomatch the new outstanding loan balance of JPY 2,483 million.
3. Earnings Outlook
The impact of this repayment on Ichigo Office’s earnings has already been reflected inthe March 29, 2018 release “Earnings Forecast Revision for the April 2018 Fiscal
Period” and today’s release “Earnings Forecast Revision for the October 2018 Fiscal
Period and Earnings Forecast for the April 2019 Fiscal Period.”1

Reference: Loan and Bond Composition after Repayment
Outstanding Loan and Bond Balance (as of April 27, 2018)(JPY million)
BeforeRepayment(A)1
Short-term bank loansLong-term bank loans(due within one year)

After
Repayment(B)2

Change(B) - (A)–––13,539

11,575-1,964Long-term bank loans

88,34589,012+667

Total bank loans

101,885

100,587‐1,297

2,200

2,200

–

104,085

102,787‐1,297

Other interest-bearing liabilities–––

Total interest-bearing liabilities

104,085

102,787‐1,297

Bonds
Total bank loans and bonds

1The amount includes JPY 1 billion of the Ichigo Office Second Unsecured Investment
Corporation Bonds that were announced in the April 20, 2018 release “Bond Issuance.”
2The amount:(a) excludes today’s JPY 250 million repayment;(b) includes the new loan (JPY 3.954 billion) and excludes the existing loan to be repaid(JPY 4.958 billion) as per today’s release “New Loan and Interest Rate Swap”;(c) excludes a JPY 43 million partial principal repayment scheduled on April 27, 2018.

2

Distribution of Loan and Bond Maturities (as of April 27, 2018)
Before Repayment(JPY million)■ Bank Loans■ Bonds
9,064
6,867
4,958

9,574

10,233

9,639

9,629

9,633

9,623

7,263

4,600

4,549

3,400
2,380

Apr
2018

Oct
2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr2021

Oct
2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct2024

Apr2025

Oct2025

Apr2026

After Repayment

Oct2026

Apr
2027

1,200

1,000

Oct
2027

Apr2028(JPY million)■ Bank Loans■ Bonds

9,574

10,233

9,639

9,629

9,633

9,623

8,814
6,867

7,263

4,600

4,549

3,954

3,400
2,380

Apr
2018

Oct
2018

Apr2019

Oct
2019

Apr2020

Oct2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

3

Oct2023

Apr2024Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr
2027

1,200

1,000

Oct2027

Apr2028